
	(in thousands)
Balance as of December 31, 2025	$	1,024,300
Acquisitions	—
Foreign currency translation and other adjustments	(13,539)
Balance as of September 30, 2026	$	1,010,761

A significant portion of our assets consists of goodwill, which represents the excess of the purchase price over the estimated fair value of net assets acquired in business combinations and was primarily derived from the take‑private transaction of SolarWinds in February 2016 and subsequent acquisitions. We test goodwill for impairment at least annually during the fourth quarter and more frequently if events or changes in circumstances indicate that an impairment may exist. An impairment is recognized when the carrying value of our reporting unit exceeds its estimated fair value. No goodwill impairment has been recorded during the nine months ended September 30, 2026 and 2025.

We operate as a single reporting unit for purposes of goodwill impairment testing. During the three months ended June 30, 2026, we identified indicators of potential impairment, primarily due to a sustained decline in our stock price and market capitalization, and performed an interim quantitative goodwill impairment test as of June 30, 2026. The fair value of our reporting unit exceeded its carrying value and, therefore, no goodwill impairment was recorded during the three months ended June 30, 2026.

During the three months ended September 30, 2026, we evaluated indicators of impairment for our single reporting unit, including an increase in our stock price, and determined that it was more likely than not that the fair value of our reporting unit exceeded its carrying value. As a result, Management concluded that a triggering event did not occur during the three months ended September 30, 2026 and a quantitative impairment test of goodwill was not required during the period.

A sustained decline in the Company's stock price, or changes in other assumptions used in estimating the fair value of the reporting unit, could indicate that the fair value of the reporting unit has declined below its carrying value and could require the recognition of a goodwill impairment charge in a future period, which could have a material adverse impact on the Company's results of operations. The Company will continue to monitor its stock price and other relevant qualitative and quantitative factors throughout the remainder of fiscal 2026, including in connection with our annual goodwill impairment test in the fourth quarter.